Warner Bros., developer end effort to build Southern Nevada studio

A partnership between a leading production studio and development group to build a film studio campus in Southern Nevada has fallen through, a source close to the deal said Thursday.

Warner Bros. Discovery and Birtcher Development, a Newport Beach, California-based developer, will no longer work together in a bid to build a 34-acre film campus in Southern Nevada. A source familiar with the situation said Warner Bros. is looking for other real estate partners.

“We remain committed to creating Warner Bros. Studios Nevada, and excited about the opportunity to bring great jobs, workforce and economic development, and educational opportunities to the state,” a Warner Bros. Discovery spokesperson said in an emailed statement Thursday.

The proposed project has been part of the film industry’s legislative push to expand Nevada’s film tax credit program to up to $95 million in annual tax credits associated with building infrastructure in the state. Such a significant expansion of Nevada’s tax credit program is expected to be a major effort in the upcoming state legislative session that begins Feb. 3.

Birtcher and Warner Bros. previously announced their prospective campus — dubbed Warner Bros. Studios Nevada — in August. The media conglomerate promised to invest $8.5 billion in long-term production spending if it received support from an expanded film tax credit program. It planned to partner with UNLV and build the studio at the Harry Reid Research and Technology Park in southwest Vegas.

The idea to tie film tax credits to studio infrastructure was first introduced by Sen. Roberta Lange, D-Las Vegas, in the 2023 legislative session and proposed making $190 million available annually for 20 years. Though it received the lobbying support of Birtcher, Sony Pictures Entertainment and the Howard Hughes Corp., — plus some high-profile names like actors Mark Wahlberg and Jeremy Renner — the bills failed to make it to a floor vote.

Lange and Assemblywoman Sandra Jauregui, D-Las Vegas, are both expected to introduce new versions of the proposal this year but with fewer dollars available from the state. Both bills will also require the proposed studios to build space for vocational training, internships and workforce development.

Path forward unclear

It’s unclear how this development will affect the legislative discussion. After Warner Bros. summer proposal announcement, it appeared that the studio and Sony were on a path to compete for whatever transferable tax credits are available if passed. Currently, the state offers $10 million in annual film tax credits.

The parties all indicated their continued interest in expanding the film tax credit program to include infrastructure. In a Thursday statement, Lange said she was committed to finding alternative studio partners.

“It is important to understand that we have been working in partnership over the last four years with UNLV and the educational consortium, Birtcher Nevada, Organized Labor, and Manhattan Beach Studios, to create a dynamic opportunity for job development, educational opportunity, and economic growth,” she said in a statement. “As we work to engage other partners in this effort, I will continue to work on behalf of Nevada’s citizens to ensure that our partnership is of high value and fidelity to the well-being and future of our State.”

Birtcher Nevada Development President Brooke Birtcher Gustafson said the firm is also committed to studio plans. In a statement, she reiterated the development goals and said they continue to partner with another previously announced studio company, Manhattan Beach Studios.

“We started this journey several years ago with Senator Lange and are engaged with UNLV for the development of the Nevada Studios Media and Technology Lab to advance her vision for education in the film industry sector,” Birtcher Gustafson said in a statement. “We’re sorry that Warner Bros has decided not to move forward with us. Birtcher remains committed to the initiatives at UNLV’s Harry Reid Research & Technology Park by developing a first-class film studio, and nothing has changed in our strategic relationship with Manhattan Beach Studios (“MBS”).”

Sony continued to work with Howard Hughes after the 2023 session. Their proposal, located on Town Center Drive off the 215 Beltway, received zoning approval in March 2024 for their $1.8 billion studio and mixed-use development. No construction timeline was set.

Contact McKenna Ross at mross@reviewjournal.com. Follow @mckenna_ross_ on X.